The Selected Data That Follow Relate to the Bargeron Furniture

question 62

Essay

The selected data that follow relate to the Bargeron Furniture Company. $$\begin{array} { l r } \text { Direct material purchased on account } & \$ 160,000 \\\text { Direct material used } & 79,000 \\\text { Direct labor } & 170,000 \\\text { Manufacturing overhead incurred } & 100,000 \\\text { Manufacturing overhead applied } & 90,000\end{array}$$
During the year, products costing $310,000 were completed, and products costing $316,000 were sold on account for $455,000.
Required:
Prepare journal entries to record the preceding transactions and events.

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Definitions:

Operating Costs

Expenses associated with the day-to-day activities of a business, including costs of goods sold and administrative expenses.

Profitability Index

An investment appraisal technique that calculates the relationship between the costs and benefits of a project by dividing the present value of future cash flows by the initial investment cost.

Difficult to Quantify

This term describes items or factors that are hard to measure or express in numerical terms due to their subjective or complex nature.

Annual After-Tax Cash Flow

The amount of money a company or individual has left after all income taxes are paid, considered over a yearly period.